“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
— Warren Buffett
A long-term buy-and-hold strategy is often associated with Warren Buffett’s investment approach, but the results can vary widely depending on the business, the entry point, and the role of dividends in total return. For CBRE Group Inc (NYSE: CBRE), a 20-year holding period produced a positive return, though not an especially strong one on an annualized basis. Based on the figures below, a $10,000 investment in CBRE made on 05/01/2006 would have grown to $16,973.84 by 04/28/2026.
CBRE 20-Year Return Details
| Start date: | 05/01/2006 |
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| End date: | 04/28/2026 | ||||
| Start price/share: | $86.48 | ||||
| End price/share: | $146.93 | ||||
| Starting shares: | 115.63 | ||||
| Ending shares: | 115.63 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 69.90% | ||||
| Average annual return: | 2.68% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $16,973.84 | ||||
In simple terms, the investment gained $6,973.84 over the full period, equal to a total return of 69.90%. That translates to an average annual return of 2.68%, assuming no dividends were reinvested because the calculation shows none were paid on a per-share basis during the measurement period. [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
What the CBRE Buy-and-Hold Result Shows
The main takeaway is not simply that CBRE delivered a positive 20-year return. It is that time alone does not guarantee a high compounded outcome. A stock can appreciate substantially in absolute dollar terms while still producing a modest annualized return if the entry valuation is demanding, if the business is cyclical, or if income is limited.
CBRE operates in commercial real estate services, a business tied to transaction volumes, leasing activity, property markets, capital availability, and corporate demand for real estate advisory and facilities services. Over a long holding period, those end markets can go through multiple expansions and contractions. That cyclicality matters when evaluating any long-duration return profile.
Why the Annualized Return Matters More Than the Headline Gain
Total return is useful, but annualized return is usually the more informative measure when assessing a long-term investment. It allows a like-for-like comparison across stocks, indices, and asset classes over different holding periods.
- Total return: 69.90%
- Annualized return: 2.68%
- Ending value of $10,000: $16,973.84
A 69.90% gain over two decades may sound respectable in isolation, but a 2.68% annualized return is relatively subdued for equity risk over such a long span. That distinction is central to understanding the real outcome of a buy-and-hold investment in CBRE during this period.
A Key Detail: No Dividend Reinvestment Effect
The return profile here is entirely price-driven, since the calculation shows no dividends reinvested and no increase in share count. That matters because dividends can meaningfully lift long-term total return through compounding, especially over 20 years. In this case, the ending share count remained 115.63, identical to the starting share count, so the result reflects capital appreciation alone.
For investors comparing CBRE with higher-yielding equities, REITs, or broad-market benchmarks, the absence of a dividend contribution is an important part of the analysis. It means the stock had to do all of the performance work through price appreciation.
Questions for the Next 20 Years
Looking ahead, the same framework still applies. Long-term returns in CBRE will likely depend on several recurring drivers:
- commercial real estate transaction activity and leasing demand
- the direction of interest rates and credit conditions
- corporate spending on workplace, outsourcing, and facilities management
- margin stability through real estate market cycles
- the valuation investors are willing to pay at the starting point
These factors can have as much influence on long-term shareholder returns as the simple passage of time. For buy-and-hold investing, business quality matters, but purchase price and the durability of cash-generation across cycles matter as well.
More investment wisdom to ponder:
“I learned early that there is nothing new in Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again. I’ve never forgotten that.” — Jesse Livermore
